0001022079 2007-12-31 0001022079 2008-12-31 0001022079 2009-04-01 2009-06-30 0001022079 2008-04-01 2008-06-30 0001022079 2008-01-01 2008-06-30 0001022079 2008-06-30 0001022079 2009-06-30 0001022079 2009-01-01 2009-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares false --12-31 2009-06-30 10-Q 0001022079 185747242 Yes Large Accelerated Filer 7700000000 Quest Diagnostics Incorporated No Yes -213615000 -228385000 <div> <div class="Section1"> <a name= "_AUC4b40ef1801bc403a8d01198131e82b22"><![if !supportLists]>1.                   <![endif]>BASIS OF PRESENTATION </a>     Background   Quest Diagnostics Incorporated and its subsidiaries (“Quest Diagnostics” or the “Company”) is the world’s leading provider of diagnostic testing, information and services, providing insights that enable patients, physicians and others to make decisions to improve health. Quest Diagnostics offers patients and physicians the broadest access to diagnostic laboratory services through the Company’s nationwide network of laboratories and patient service centers.  The Company provides interpretive consultation through the largest medical and scientific staff in the industry, with approximately 900 M.D.s and Ph.D.s primarily located in the United States.   Quest Diagnostics is the leading provider of clinical testing, including gene-based testing and other esoteric testing, anatomic pathology services and testing for drugs-of-abuse, and the leading provider of risk assessment services for the life insurance industry.  The Company is also a leading provider of testing for clinical trials.  The Company’s diagnostics products business manufactures and markets diagnostic test kits and specialized point-of-care testing.  Quest Diagnostics empowers healthcare organizations and clinicians with state-of-the-art information technology solutions that can improve patient care and medical practice. Basis of Presentation The interim consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of financial condition and results of operations for the periods presented.  Except as otherwise disclosed, all such adjustments are of a normal recurring nature.  The interim consolidated financial statements have been compiled without audit.  Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year.  These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s 2008 Annual Report on Form 10-K. On January 1, 2009, the Company adopted Statement of Financial Accounting Standard (“SFAS”) No. 160 “Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51” (“SFAS 160”). In accordance with the requirements of SFAS 160, the Company has provided a new presentation on the face of the consolidated financial statements to separately classify non-controlling interests within the equity section of the consolidated balance sheets and to separately report the amounts attributable to controlling and non-controlling interests in the consolidated statements of operations, comprehensive income and changes in equity for all periods presented.  The adoption of SFAS 160 did not impact earnings per share attributable to Quest Diagnostics’ common stockholders. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.    Earnings Per Share On January 1, 2009, the Company adopted FASB Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (“FSP EITF 03-6-1”).  This standard addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method as described in SFAS No. 128, “Earnings per Share.” Under the guidance in FSP EITF 03-6-1, the Company’s unvested restricted common stock and unvested restricted stock units that contain non-forfeitable rights to dividends are participating securities that are included in the computation of earnings per share pursuant to the </div> two-class method.  Earnings per share calculations for all prior periods have been presented based on the two-class method. Basic earnings per common share is calculated by dividing net income, adjusted for earnings allocated to participating securities, by the weighted average common shares outstanding.  Diluted earnings per common share is calculated by dividing net income, adjusted for earnings allocated to participating securities, by the weighted average common shares outstanding after giving effect to all potentially dilutive common shares outstanding during the period.  Potentially dilutive common shares include the dilutive effect of outstanding stock options and performance share units granted under the Company’s Amended and Restated Employee Long-Term Incentive Plan and its Amended and Restated Non-Employee Director Long-Term Incentive Plan. The computation of basic and diluted earnings per common share was as follows (in thousands, except per share data): <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; border:none;mso-border-bottom-alt:solid windowtext 1.5pt;mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="208" colspan="3" valign="top" style= "width:155.95pt;border:none; padding:0in .05in 0in .05in;height:6.7pt"> Three Months Ended June 30, </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="202" colspan="3" valign="top" style= "width:151.75pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:6.7pt"> Six Months Ended June 30, </td> </tr> <tr style= "mso-yfti-irow:1;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="top" style= "width:72.9pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .25pt;mso-border-bottom-alt:solid windowtext .25pt; padding:0in .05in 0in .05in;height:6.7pt"> 2009 </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .25pt;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="top" style= "width:74.05pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .25pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:6.7pt"> 2008 </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="top" style= "width:70.25pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt:solid windowtext .5pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:6.7pt"> 2009 </td> <td width="11" valign="top" style= "width:8.2pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="top" style= "width:73.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:6.7pt"> 2008 </td> </tr> <tr style= "mso-yfti-irow:2;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Amounts attributable to Quest Diagnostics’ stockholders: </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="top" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="top" style= "width:70.25pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="top" style= "width:73.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:3;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income from continuing operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   188,112 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   162,218 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   356,885 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   302,912 </td> </tr> <tr style= "mso-yfti-irow:4;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income (loss) from discontinued operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                    88 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                 (890) </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">              (1,583) </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">              (1,977) </td> </tr> <tr style= "mso-yfti-irow:5;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Net income available to Quest Diagnostics’ common stockholders </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   188,200 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   161,328 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   355,302 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   300,935 </td> </tr> <tr style= "mso-yfti-irow:6;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:7;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income from continuing operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   188,112 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   162,218 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   356,885 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   302,912 </td> </tr> <tr style= "mso-yfti-irow:8;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Less:  Earnings allocated to participating securities </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                  568 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                  353 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                  894 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                  620 </td> </tr> <tr style= "mso-yfti-irow:9;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Earnings available to Quest Diagnostics’ common stockholders – basic and diluted </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   187,544 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   161,865 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   355,991 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $   302,292 </td> </tr> <tr style= "mso-yfti-irow:10;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   Weighted average common shares outstanding – basic </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">           185,266 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">           194,527 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">           187,318 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">           194,335 </td> </tr> <tr style= "mso-yfti-irow:11;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:12;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Effect of dilutive securities: </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:13;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Stock options and performance share units </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">               1,737 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">               1,592 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">               1,532 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">               1,616 </td> </tr> <tr style= "mso-yfti-irow:14;page-break-inside:avoid;height:8.0pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:8.0pt"> Weighted average common shares outstanding – diluted </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">           187,003 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">           196,119 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">           188,850 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:8.0pt">           195,951 </td> </tr> <tr style= "mso-yfti-irow:15;page-break-inside:avoid;height:2.85pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:2.85pt">   </td> </tr> <tr style= "mso-yfti-irow:16;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Earnings per share attributable to Quest Diagnostics’ common stockholders - basic: </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:17;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income from continuing operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.01 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          0.83 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.90 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.56 </td> </tr> <tr style= "mso-yfti-irow:18;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income (loss) from discontinued operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                       - </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                       - </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                (0.01) </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                (0.01) </td> </tr> <tr style= "mso-yfti-irow:19;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Net income </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.01 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          0.83 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.89 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.55 </td> </tr> <tr style= "mso-yfti-irow:20;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:21;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Earnings per share attributable to Quest Diagnostics’ common stockholders - diluted: </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> <tr style= "mso-yfti-irow:22;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income from continuing operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.00 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          0.83 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.89 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.54 </td> </tr> <tr style= "mso-yfti-irow:23;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Income (loss) from discontinued operations </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                       - </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                (0.01) </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                (0.01) </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">                (0.01) </td> </tr> <tr style= "mso-yfti-irow:24;page-break-inside:avoid;height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt"> Net income </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.00 </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          0.82 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.88 </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">      $          1.53 </td> </tr> <tr style= "mso-yfti-irow:25;mso-yfti-lastrow:yes;page-break-inside:avoid; height:6.7pt"> <td width="240" valign="top" style= "width:179.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="top" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="97" valign="bottom" style= "width:72.9pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="99" valign="bottom" style= "width:74.05pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="94" valign="bottom" style= "width:70.25pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="11" valign="bottom" style= "width:8.2pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> <td width="98" valign="bottom" style= "width:73.3pt;border:none;padding:0in .05in 0in .05in; height:6.7pt">   </td> </tr> </table>   Stock options and performance share units of 3.9 million shares and 4.2 million shares for the three and six months ended June 30, 2009, respectively, were not included due to their antidilutive effect.   Stock options and performance share units of 4.7 million shares and 4.4 million shares for the three and six months ended June 30, 2008, respectively, were not included due to their antidilutive effect.   Subsequent Events   The management of the Company has evaluated the period after the balance sheet date up through July 28, 2009, which is the date that the consolidated financial statements were issued, and determined that there were no subsequent events or transactions that required a recognition or disclosure in the consolidated financial statements.   New Accounting Standards   On January 1, 2009, the Company adopted SFAS No. 141(R) “Business Combinations” (“SFAS 141(R)”).  SFAS 141(R) changes several underlying principles in applying the acquisition method of accounting (previously referred to as the purchase method).  Among the significant changes, SFAS 141(R) requires a redefining of the measurement date of a business combination, expensing direct transaction costs as incurred, capitalizing in-process research and development costs as an intangible asset and recording a liability for contingent consideration at the measurement date with subsequent re-measurements recorded in the results of operations. SFAS 141(R) also requires that costs for business restructuring and exit activities related to the acquired company will be included in the post-combination financial results of operations and also provides new guidance for the recognition and measurement of contingent assets and liabilities in a business combination. In addition, SFAS 141(R) requires several new disclosures, including the reasons for the business combination, the factors that contribute to the recognition of goodwill, the amount of acquisition related third-party expenses incurred, the nature and amount of contingent consideration, and a discussion of pre-existing relationships between the parties. Transaction costs for potential business combinations that had not closed by December 31, 2008 were written off on January 1, 2009 and were not material.    The application of SFAS 141(R) is likely to have a significant impact on how the Company allocates the purchase price of prospective business combinations, including the recognition and measurement of assets acquired and liabilities assumed and the expensing of direct transaction costs and costs to integrate the acquired business.   On January 1, 2009, the Company adopted SFAS 160 which establishes accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary.  SFAS 160 requires entities to record the acquisition of non-controlling interests in subsidiaries initially at fair value. In accordance with the requirements of SFAS 160, the Company has provided a new presentation on the face of the consolidated financial statements to separately classify non-controlling interests within the equity section of the consolidated balance sheets and to separately report the amounts attributable to controlling and non-controlling interests in the consolidated statements of operations, comprehensive income and changes in equity for all periods presented.  The adoption of SFAS 160 did not impact earnings per share attributable to Quest Diagnostics’ common stockholders. There were no changes in the Company’s ownership interests in subsidiaries or deconsolidation of subsidiaries for the three or six months ended June 30, 2009.   On January 1, 2009, the Company adopted SFAS No. 161 “Disclosures About Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133” (“SFAS 161”).  SFAS 161 amends SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” by requiring expanded disclosures about an entity’s derivative instruments and hedging activities.   SFAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.   In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments” (“FSP FAS 107-1 and APB 28-1”).  FSP FAS 107-1 and APB 28-1 extends the disclosure requirements of SFAS No. 107, “Disclosures About Fair Value of Financial Instruments” (“SFAS 107”), to interim period financial statements, in addition to the existing requirements for annual periods and reiterates SFAS 107’s requirement to disclose the methods and significant assumptions used to estimate fair value.  FSP FAS 107-1 and APB 28-1 was effective for the Company’s interim and annual periods commencing with its June 30, 2009 consolidated financial statements and have been applied on a prospective basis.  FSP FAS 107-1 and APB 28-1 did not have a material impact on the Company’s consolidated financial statements.    In June 2009, the FASB issued SFAS No. 165, “Subsequent Events” (“SFAS 165”).  Prior to SFAS 165, the authoritative guidance for subsequent events was previously addressed only in U.S. auditing standards.  SFAS 165 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued and requires the Company to disclose the date through which it has evaluated subsequent events and whether that was the date the financial statements were issued or available to be issued.  SFAS 165 does not apply to subsequent events or transactions that are within the scope of other applicable generally accepted accounting principles in the United States (“GAAP”) that provide different guidance on the accounting treatment for subsequent events or transactions.  SFAS 165 became effective for the Company on June 30, 2009 and its adoption did not have a material impact on its consolidated financial statements.                   In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R)” (“SFAS 167”).  SFAS 167 amends FIN 46(R) to provide a new approach for determining which entity should consolidate a variable interest entity (VIE), how and when to reconsider the consolidation or de-consolidation of a VIE and requires disclosures about an entity’s significant judgments and assumptions used in its decision to consolidate or not consolidate a VIE.  Under SFAS 167, the new consolidation model is a more qualitative assessment of power and economics that considers which entity has the power to direct the activities that “most significantly impact” the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.  SFAS 167 is effective for the Company as of January 1, 2010 and the Company does not expect the impact of its adoption to be material to its consolidated financial statements. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div> -289000 -140000 510437000 270831000 609332000 321816000 93049000 45432000 76254000 36846000 -249000 -1656000 -15754000 -15902000 89456000 89537000 20039000 510000000 -304082000 -511185000

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<div> <a name="_AUC9669f81d2af44851ac22241d827fb83e">7.             SUPPLEMENTAL CASH FLOW & OTHER DATA</a>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="190" colspan="3" valign="top" style= "width:142.65pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="182" colspan="3" valign="top" style= "width:136.35pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="190" colspan="3" valign="top" style= "width:142.65pt;padding:0in .05in 0in .05in"> Three Months Ended </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="182" colspan="3" valign="top" style= "width:136.35pt;padding:0in .05in 0in .05in"> Six Months Ended </td> </tr> <tr style="mso-yfti-irow:2;page-break-inside:avoid"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="190" colspan="3" valign="top" style= "width:142.65pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> June 30, </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="182" colspan="3" valign="top" style= "width:136.35pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> June 30, </td> </tr> <tr style="mso-yfti-irow:3"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.7pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in"> 2009 </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in"> 2008 </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt:solid windowtext .5pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in"> 2009 </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="top" style= "width:64.35pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> 2008 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.7pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="top" style= "width:64.35pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Depreciation expense </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">    $     55,811 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">    $     57,509 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $   111,665 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">    $   113,504 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:7"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Interest expense </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">          (36,961) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">          (46,876) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          (76,805) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">          (96,521) </td> </tr> <tr style="mso-yfti-irow:8"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Interest income </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">                115 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">             1,444 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                551 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">             3,472 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Interest expense, net </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">          (36,846) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">          (45,432) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          (76,254) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">          (93,049) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:11"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Interest paid </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">            29,720 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">            40,702 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            76,857 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">            99,631 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="252" valign="bottom" style= "width:189.0pt;padding:0in .05in 0in .05in"> Income taxes paid </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.7pt;padding:0in .05in 0in .05in">          136,153 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in">          168,371 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          167,500 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="bottom" style= "width:64.35pt;padding:0in .05in 0in .05in">          193,213 </td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes"> <td width="252" valign="top" style= "width:189.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.7pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="88" valign="top" style= "width:65.95pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="86" valign="top" style= "width:64.35pt;padding:0in .05in 0in .05in">   </td> </tr> </table> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 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<div> <a name="_AUC57a5d4c9c0524d5a92182b87298b8280">8.             COMMITMENTS AND CONTINGENCIES</a> The Company has a line of credit with a financial institution totaling $85 million for the issuance of letters of credit (the “letter of credit line”).  The letter of credit line, which is renewed annually, matures on November 19, 2009 and is guaranteed by certain of the Company’s domestic, wholly-owned subsidiaries (the “Subsidiary Guarantors”). In support of its risk management program, to ensure the Company’s performance or payment to third parties, $74 million in letters of credit were outstanding at June 30, 2009.  The letters of credit primarily represent collateral for current and future automobile liability and workers’ compensation loss payments.  In addition, $5.4 million of bank guarantees were outstanding at June 30, 2009 in support of certain foreign operations.   Contingent Lease Obligations   The Company is subject to contingent obligations under certain leases and other instruments incurred in connection with real estate activities and other operations associated with LabOne, Inc., which the Company acquired in 2005, and certain of its predecessor companies.  No liability has been recorded for any of these potential contingent obligations.  See Note 14 to the Consolidated Financial Statements contained in the Company’s 2008 Annual Report on Form 10-K for further details.   Legal Matters The Company is involved in various legal proceedings.  Some of the proceedings against the Company involve claims that are substantial in amount.  NID Investigation On April 15, 2009, the Company finalized the resolution of the previously disclosed federal government investigation related to NID, a test kit subsidiary voluntarily closed in 2006, and entered into a final settlement agreement with the federal government.  Pursuant to the settlement agreement, in the second quarter of 2009, the Company paid $268 million to settle the civil allegations.  As part of the settlement agreement, the Company was released from all federal civil claims underlying the investigation and the United States Department of Health and Human Services agreed to refrain from seeking the Company’s exclusion from Medicare, Medicaid or other federal healthcare programs.  The Company also entered into a five-year corporate integrity agreement with the Office of Inspector General for the United States Department of Health and Human Services.  In addition, NID pled guilty to a single count of felony misbranding and paid a $40 million fine.  These second quarter payments totaling $308 million, which had been previously reserved, were funded out of cash on-hand and available credit facilities.  The Company also expects to enter into separate settlement agreements with certain states totaling approximately $6 million which are fully reserved for.  In June 2009, a shareholder plaintiff filed a purported derivative action in the Superior Court of New Jersey, Morris County, on behalf of the Company against certain present and former directors and officers of the Company based on, among other things, their alleged breaches of fiduciary duties in connection with the manufacture, marketing, sale and billing related to certain test kits manufactured by NID.  The complaint includes claims for, among other things, breach of fiduciary duty and waste of corporate assets and seeks, among other things, damages and remission of compensation received by the individual defendants. Other Matters The Company has in the past entered into several settlement agreements with various government and private payers relating to industry-wide billing and marketing practices that had been substantially discontinued.  The federal or state governments may bring additional claims based on new theories as to the Company’s practices which management believes to be in compliance with law.  In addition, certain federal and state statutes, including the qui tam provisions of the federal False Claims Act, allow private individuals to bring lawsuits against healthcare companies on behalf of government or private payers alleging inappropriate billing practices.  The Company is aware of certain pending lawsuits, including a class action lawsuit, and has received several subpoenas related to billing practices. During the second quarter of 2005, the Company received a subpoena from the United States Attorney’s Office for the District of New Jersey.  The subpoena seeks the production of business and financial records regarding capitation and risk sharing arrangements with government and private payers for the years 1993 through 1999.  Also, during the third quarter of 2005, the Company received a subpoena from the United States Department of Health and Human Services, Office of the Inspector General.  The subpoena seeks the production of various business records including records regarding the Company’s relationship with health maintenance organizations, independent physician associations, group purchasing organizations, and preferred provider organizations relating back to as early as 1995.  The Company is cooperating with the United States Attorney’s Office and the Office of the Inspector General. In 2006 and 2008, the Company and several of its subsidiaries received subpoenas from the California Attorney General’s Office seeking documents relating to the Company’s billings to MediCal, the California Medicaid program.  The Company cooperated with the government’s requests.  Subsequently, the State of California intervened as plaintiff in a civil lawsuit, California ex rel. Hunter Laboratories, LLC v. Quest Diagnostics Incorporated., et al., filed in California Superior Court against a number of clinical laboratories, including the Company and several of its subsidiaries.  The complaint alleges overcharging of MediCal for testing services.  The complaint was originally filed by a competitor laboratory in California under the whistleblower provisions of the California False Claims Act.  The complaint was unsealed on March 20, 2009.   In April 2009, the Company and certain of its subsidiaries received a subpoena from the Virginia Attorney General’s Office seeking documents related to the Company’s billings to the Virginia Medicaid program.   The Company is cooperating with the request.  The Company understands that there may be other pending qui tam claims brought by former employees or other “whistle blowers” as to which the Company cannot determine the extent of any potential liability. The Company also is aware of certain pending individual or class action lawsuits related to billing practices filed under the qui tam provisions of the Civil False Claims Act and/or other federal and state statutes, regulations or other laws. Several of these other matters are in their early stages of development and involve responding to and cooperating with various government investigations and related subpoenas.  While the Company believes that at least a reasonable possibility exists that losses may have been incurred, based on the nature and status of the investigations, the losses are either currently not probable or cannot be reasonably estimated. Management has established reserves in accordance with generally accepted accounting principles for the other matters discussed above.  Such reserves totaled less than $5 million as of June 30, 2009.  Although management cannot predict the outcome of such matters, management does not anticipate that the ultimate outcome of such matters will have a material adverse effect on the Company’s financial condition but may be material to the Company’s results of operations or cash flows in the period in which the impact of such matters is determined or paid.  In addition, there may be pending qui tam claims brought by former employees or other “whistle blowers,” or other pending claims as to which the Company has not been provided with a copy of the complaint and accordingly cannot determine the extent of any potential liability.                                 As a general matter, providers of clinical testing services may be subject to lawsuits alleging negligence or other similar legal claims.  These suits could involve claims for substantial damages.  Any professional liability litigation could also have an adverse impact on the Company’s client base and reputation.  The Company maintains various liability insurance coverage for claims that could result from providing or failing to provide clinical testing services, including inaccurate testing results and other exposures.  The Company’s insurance coverage limits its maximum exposure on individual claims; however, the Company is essentially self-insured for a significant portion of these claims.  Reserves for such matters are established by considering actuarially determined losses based upon the Company’s historical and projected loss experience.  Management believes that present insurance coverage and reserves are sufficient to cover currently estimated exposures.  Although management cannot predict the outcome of any claims made against the Company, management does not anticipate that the ultimate outcome of any such proceedings or claims will have a material adverse effect on the Company’s financial condition but may be material to the Company’s results of operations or cash flows in the period in which the impact of such claims is determined or paid. <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

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<div> <a name="_AUC91e8064fb09743ecaa8f458d5972c37e">5.             DEBT</a>   Short-term borrowings and current portion of long-term debt at June 30, 2009 and December 31, 2008 consisted of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:5.4pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Borrowings under Secured Receivables Credit Facility </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt"> $      200,000 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $                 - </td> </tr> <tr style="mso-yfti-irow:3"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Current portion of long-term debt </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">             4,969 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">             5,142 </td> </tr> <tr style="mso-yfti-irow:4;mso-yfti-lastrow:yes"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Total short-term borrowings and current portion of long-term debt </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt"> $      204,969 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $          5,142 </td> </tr> </table> Long-term debt at June 30, 2009 and December 31, 2008 consisted of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.2in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Industrial Revenue Bonds due September 2009 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt"> $          1,800 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $          1,800 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Senior Notes due November 2010 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">         226,243 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         399,724 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Senior Notes due July 2011 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">         248,432 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         274,724 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Term Loan due May 2012 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">      1,092,000 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      1,092,000 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Senior Notes due November 2015 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">         498,987 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         498,907 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Senior Notes due July 2017 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">         374,361 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         374,320 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Senior Notes due July 2037 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">         420,604 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">         420,526 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Debentures due June 2034 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">             3,098 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">             3,070 </td> </tr> <tr style="mso-yfti-irow:10;height:9.45pt"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt; height:9.45pt"> Other </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt; height:9.45pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt; height:9.45pt">           17,211 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt; height:9.45pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt; height:9.45pt">           18,160 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt">     Total </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">      2,882,736 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">      3,083,231 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt"> Less: current portion </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">             4,969 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">             5,142 </td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes"> <td width="318" valign="top" style= "width:238.5pt;padding:0in 5.4pt 0in 5.4pt">     Total long-term debt </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt"> $   2,877,767 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $   3,078,089 </td> </tr> </table> June 2009 Debt Tender                   On May 19, 2009, the Company commenced a cash tender offer to purchase up to $200 million aggregate principal amount of its 5.125% Senior Notes due 2010 and 7.50% Senior Notes due 2011 (collectively, the “Notes”).  On June 16, 2009, The Company finalized its cash tender offer (the “June 2009 Debt Tender”) by purchasing approximately $174 million aggregate principal amount of its 5.125% Senior Notes Due 2010 and approximately $26 million aggregate principal amount of its 7.50% Senior Notes due 2011 that resulted in pre-tax losses of $4.8 million and $1.5 million, respectively.  The aggregate pre-tax loss of $6.3 million includes the write-off of $0.5 million of deferred financing fees and unamortized discounts and cash payments of  $5.8 million related to premiums and other costs to purchase the Notes and is included in “other (expense) income, net.”   The June 2009 Debt Tender was financed with cash on-hand and $150 million of borrowings under the Secured Receivables Credit Facility.    Secured Receivables Credit Facility   For the six months ended June 30, 2009, the Company borrowed $510 million under its Secured Receivables Credit Facility primarily to fund second quarter payments totaling $308 million in connection with the previously disclosed settlement of the federal government investigation related to NID (see Note 8) and to fund $150 million of debt repayments in connection with the June 2009 Debt Tender.  During the six months ended June 30, 2009, the Company repaid $310 million on its Secured Receivables Credit Facility.  At June 30, 2009, borrowings outstanding under the Secured Receivables Credit Facility totaled $200 million. As of June 30, 2009, long-term debt maturing in each of the years subsequent to June 30, 2010 is as follows: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:72.9pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> Fiscal Year ending December 31, </td> <td width="84" valign="top" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> 2010 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt"> $       226,243 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> 2011 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt">          782,064 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> 2012 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt">          561,357 </td> </tr> <tr style="mso-yfti-irow:4;height:5.85pt"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt; height:5.85pt"> 2013 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt; height:5.85pt">                 617 </td> </tr> <tr style="mso-yfti-irow:5;height:5.85pt"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt; height:5.85pt"> 2014 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt; height:5.85pt">                 263 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> 2015 </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt">          499,266 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt"> Thereafter </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt">          807,957 </td> </tr> <tr style="mso-yfti-irow:8;mso-yfti-lastrow:yes"> <td width="378" valign="top" style= "width:283.35pt;padding:0in 5.4pt 0in 5.4pt">     Total long-term debt </td> <td width="84" valign="bottom" style= "width:63.2pt;padding:0in 5.4pt 0in 5.4pt"> $    2,877,767 </td> </tr> </table>                   A full description of the terms of the Company’s indebtedness and related debt service requirements is contained in Note 9 to the Consolidated Financial Statements in the Company’s 2008 Annual Report on Form 10-K. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

-6061000

57021000

218419000

154017000

132684000

130047000

<div> <a name="_AUC215c1cea4a3f47079b7253e4fb976726">4.             FINANCIAL INSTRUMENTS</a>   The Company uses derivative financial instruments to manage its exposure to market risks for changes in interest rates and foreign currency. This includes the use of interest rate swap agreements and foreign currency forward contracts to manage its exposure to movements in interest and currency rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These policies prohibit holding or issuing derivative financial instruments for speculative or trading purposes.  The Company does not enter into derivative financial instruments that contain credit-risk-related contingent features or requirements to post collateral.    Interest Rate Risk   The Company is exposed to interest rate risk on its cash and cash equivalents and its debt obligations.  Interest income earned on cash and cash equivalents may fluctuate as interest rates change, however, due to their relatively short maturities, the Company does not hedge these assets and the impact of interest rate risk is not material.  The Company’s debt obligations consist of fixed-rate and variable-rate debt instruments.  The Company’s objective is to mitigate the variability in cash outflows that result from changes in interest rates by maintaining a balanced mix of fixed-rate and variable-rate debt obligations.  In order to achieve these objectives, the Company has entered into interest rate swaps on a portion of one of its variable-rate debt obligations to make that portion a fixed-rate debt instrument.  As of June 30, 2009, the interest rate swaps allowed the Company to receive variable rates of interest based on three-month LIBOR plus an agreed upon spread of 50 basis points and pay fixed rates of interest ranging from 5.13% to 5.27% on notional amounts aggregating $200 million.  As of June 30, 2009, the three-month LIBOR rate on these financial instruments was 1.05%.  These interest rate swaps are accounted for as cash flow hedges and the Company records the derivatives as either an asset or liability measured at its fair value. The effective portion of changes in the fair value of the derivatives is recorded in “accumulated other comprehensive loss.”  If it is determined that a derivative ceases to be a highly effective hedge, the Company discontinues hedge accounting, and any deferred gains or losses are recorded in the consolidated statement of operations.  The total loss, net of tax benefit, recognized in accumulated other comprehensive loss on the interest rate swaps as of June 30, 2009 and December 31, 2008 was $2.4 million and $3.6 million, respectively.  There was no gain or loss recognized on the swap agreements for the three or six months ended June 30, 2009 and 2008 as a result of ineffectiveness.  The periodic net cash settlements under the interest rate swaps are recorded in interest expense, net.   Foreign Currency Risk   The Company is exposed to market risk for changes in foreign exchange rates primarily under certain inter-company receivables and payables.  Foreign exchange forward contracts are used to mitigate the exposure of the eventual net cash inflows or outflows resulting from these intercompany transactions.  The objective is to hedge a portion of the forecasted foreign currency risk over a rolling 12-month time horizon to mitigate the eventual impacts of changes in foreign exchange rates on the cash flows of the intercompany transactions.  As of June 30, 2009, the total notional amount of foreign currency forward contracts in U.S. dollars was $49.5 million and principally consist of contracts in Swedish krona and British pounds.   Notional amounts represent the face amount of contractual arrangements and the basis on which currencies are exchanged and are not a measure of market or credit risk exposure.  The Company does not designate these derivative instruments as hedges under current accounting standards unless the benefits of doing so are material.  The Company’s foreign exchange exposure is not material to the Company’s consolidated financial condition or results of operations.  The Company does not hedge its net investment in non-U.S. subsidiaries because it views those investments as long-term in nature.   A summary of the fair values of derivative instruments in the consolidated balance sheets is stated in the table below (in thousands):   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> June 30, 2009 </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="180" colspan="3" valign="top" style= "width:135.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> Balance Sheet Classification </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> Fair Value </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> Balance Sheet Classification </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in"> Fair Value </td> </tr> <tr style="mso-yfti-irow:3;height:6.9pt"> <td width="204" valign="top" style= "width:153.0pt;padding:0in .05in 0in .05in; height:6.9pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.9pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:6.9pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.9pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:6.9pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.9pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:6.9pt">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:6.9pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Derivatives Designated as Hedging Instruments </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Liability Derivatives: </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Interest rate swaps </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current liabilities </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $         3,923 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current liabilities </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $         5,888 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Total </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               3,923 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               5,888 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:9"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Derivatives Not Designated as Hedging Instruments </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:10"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Asset Derivatives: </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:11"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Foreign currency forward contracts </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current assets </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               1,138 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current assets </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               2,617 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Total </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               1,138 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               2,617 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:14"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Liability Derivatives: </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:15"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Foreign currency forward contracts </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current liabilities </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                  674 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other current liabilities </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               4,142 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Total </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                  674 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">               4,142 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:18"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in"> Total Net Derivatives Liability </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $         3,459 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $         7,413 </td> </tr> <tr style="mso-yfti-irow:19;mso-yfti-lastrow:yes"> <td width="204" valign="bottom" style= "width:153.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> </tr> </table> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

1.55

0.83

1.89

1.01

1.53

0.82

1.88

1.00

1223000

1790000

-1223000

-1790000

<div> <a name= "_AUC72e81b2e02244ca4b9e9e7419681cf0b"> 2.             FAIR VALUE MEASUREMENTS </a>     SFAS No. 157, “Fair Value Measurements” (“SFAS 157”) provides a single definition of fair value and a common framework for measuring fair value as well as new disclosure requirements for fair value measurements used in financial statements.  Fair value measurements are based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs, and are determined by either the principal market or the most advantageous market.  The principal market is the market with the greatest level of activity and volume for the asset or liability.  Absent a principal market to measure fair value, the Company has used the most advantageous market, which is the market that the Company would receive the highest selling price for the asset or pay the lowest price to settle the liability, after considering transaction costs. However, when using the most advantageous market, transactions costs are only considered to determine which market is the most advantageous and these costs are then excluded when applying a fair value measurement.    On January 1, 2009, the Company adopted the provisions of SFAS 157 for applying fair value measurements to assets, liabilities and transactions on a non-recurring basis and the adoption did not have a material effect on the Company’s financial position, results of operations or cash flows.   SFAS 157 creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values.  The basis for fair value measurements for each level within the hierarchy is described below with Level 1 having the highest priority and Level 3 having the lowest.   Level 1:  Quoted prices in active markets for identical assets or liabilities.   Level 2:  Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.   Level 3:  Valuations derived from valuation techniques in which one or more significant inputs are unobservable.   The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis.   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:5.4pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="308" colspan="5" valign="top" style= "width:231.2pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Basis of Fair Value Measurements </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt"> Quoted Prices in Active Markets for Identical Assets / Liabilities </td> <td width="16" valign="top" style= "width:11.8pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Significant Other Observable Inputs </td> <td width="16" valign="top" style= "width:11.8pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Significant Unobservable Inputs </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt"> Level 1 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Level 2 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt"> Level 3 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Assets: </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="top" style= "width:69.2pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Trading securities </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   27,297 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   27,297 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Cash surrender value of life insurance policies </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">            13,272 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                     - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">            13,272 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                     - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Foreign currency forward contracts </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">              1,138 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                      - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">              1,138 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                      - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:7"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">     Total </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   41,707 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   27,297 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   14,410 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:8"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:9"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Liabilities: </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:10"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Deferred compensation liabilities </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   43,682 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   43,682 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:11"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Interest rate swaps </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">              3,923 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                     - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">              3,923 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                     - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:12"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt"> Foreign currency forward contracts </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                 674 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                      - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                 674 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">                      - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:13"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">     Total </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   48,279 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $   48,279 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">       $             - </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:14"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:15;mso-yfti-lastrow:yes"> <td width="216" valign="top" style= "width:2.25in;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="92" valign="bottom" style= "width:69.2pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> </table>   The Company offers certain employees the opportunity to participate in a supplemental deferred compensation plan.  A participant’s deferrals, together with Company matching credits, are invested in a variety of participant-directed stock and bond mutual funds as well as Company common stock and are classified as trading securities.  Changes in the fair value of these securities are measured using quoted prices in active markets based on the market price per unit multiplied by the number of units held exclusive of any transaction costs.  A corresponding adjustment for changes in fair value of the trading securities is also reflected in the changes in fair value of the deferred compensation obligation.  The deferred compensation liabilities are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the trading securities.   In connection with the acquisition of AmeriPath Group Holdings, Inc. (“AmeriPath”) in May 2007, the Company assumed a non-qualified deferred compensation program AmeriPath offers to certain employees.  A participant’s deferrals, together with Company matching credits, are “invested” at the direction of the employee in a hypothetical portfolio of investments which are tracked by an administrator.  The Company purchases life insurance policies, with the Company named as beneficiary of the policies, for the purpose of funding the program’s liability.  Changes in the cash surrender value of the life insurance policies are based upon earnings and changes in the value of the underlying investments.  Changes in the fair value of the deferred compensation obligation are derived using quoted prices in active markets based on the market price per unit multiplied by the number of units.  The cash surrender value and the deferred compensation obligations are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments.     The fair value measurements of foreign currency forward contracts are obtained from a third-party pricing service.  The fair value measurements of the Company’s interest rate swaps are model-derived valuations as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present and future market conditions.  The Company does not believe that the changes in the fair values of its foreign currency forward contracts and interest rate swaps will materially differ from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a material effect on its results of operations, liquidity and capital resources.   In June 2009, the Company recorded a charge of $7.0 million associated with the write-down of an investment due to the uncertainty of recoverability form an other-than-temporary impairment loss.  A fair value measurement, using significant unobservable inputs, has been applied to this asset on a non-recurring basis.                   The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value based on the short maturities of these instruments.  In accordance with the provisions of SFAS 107, at June 30, 2009 and December 31, 2008, the fair value of the Company’s debt was estimated at approximately $3.1 billion and $2.9 billion, respectively, using quoted market prices and yields for the same or similar types of borrowings, taking into account the underlying terms of the debt instruments.  At June 30, 2009 the estimated fair value exceeded the carrying value of the debt by $31 million.  At December 31, 2008, the carrying value exceeded the estimated fair value of the debt $155 million <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

5054926000

5067267000

<div> <a name= "_AUCa864c1cfafe0406b8f4d244d331ba685"><![if !supportLists]>3.                   <![endif]>GOODWILL AND INTANGIBLE ASSETS</a> <a name="_AUCb9a330ee26bb4a258e92b214a83ab318">The changes in goodwill, net for the six months ended June 30, 2009 and for the year ended December 31, 2008 are as follows:</a>   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:5.4pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> June 30, 2009 </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:1"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="top" style= "width:1.0in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Balance at beginning of period </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $    5,054,926 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $    5,220,104 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Goodwill acquired during the year </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">             8,242 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">             9,260 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Other purchase accounting adjustments </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">               (323) </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">        (120,105) </td> </tr> <tr style="mso-yfti-irow:5"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Increase (decrease) related to foreign currency translation </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">              4,422 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt">          (54,333) </td> </tr> <tr style="mso-yfti-irow:6;mso-yfti-lastrow:yes"> <td width="330" valign="top" style= "width:247.5pt;padding:0in 5.4pt 0in 5.4pt"> Balance at end of period </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $    5,067,267 </td> <td width="18" valign="bottom" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="96" valign="bottom" style= "width:1.0in;padding:0in 5.4pt 0in 5.4pt"> $    5,054,926 </td> </tr> </table>   Approximately 90% of the Company’s goodwill as of June 30, 2009 and December 31, 2008 was associated with its clinical testing business.   For the six months ended June 30, 2009 and for the year ended December 31, 2008, goodwill acquired during the year was associated with several immaterial acquisitions.  For the year ended December 31, 2008, other purchase accounting adjustments were primarily due to changes in estimates regarding the realization of certain pre-acquisition net operating loss carryforwards, the reduction in certain acquired pre-acquisition tax loss contingencies, and a payment received in 2008 from an escrow fund established at the time of an acquisition in 2007. Intangible assets at June 30, 2009 and December 31, 2008 consisted of the following:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="60" rowspan="2" valign="bottom" style= "width:45.0pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .75pt; padding:0in .05in 0in .05in"> Weighted Average Amortiz-ation Period </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="270" colspan="5" valign="bottom" style= "width:202.5pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="246" colspan="5" valign="bottom" style= "width:184.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="270" colspan="5" valign="bottom" style= "width:202.5pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .75pt; padding:0in .05in 0in .05in"> June 30, 2009 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="246" colspan="5" valign="bottom" style= "width:184.5pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .75pt; padding:0in .05in 0in .05in"> December 31, 2008 </td> </tr> <tr style="mso-yfti-irow:2"> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;mso-border-top-alt: solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="78" valign="top" style= "width:58.5pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="72" valign="top" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="12" valign="top" style= "width:9.0pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> <td width="66" valign="top" style= "width:49.5pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .75pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="156" colspan="3" valign="bottom" style= "width:117.0pt;padding:0in .05in 0in .05in"> Amortizing intangible assets: </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   Cost </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in"> Accumulated Amortization </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="78" valign="top" style= "width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   Net </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="72" valign="top" style= "width:.75in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   Cost </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in"> Accumulated Amortization </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="66" valign="top" style= "width:49.5pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in">   Net </td> </tr> <tr style="mso-yfti-irow:4"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in"> Customer-related intangibles </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in"> 19 years </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> $588,254 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> $(114,354) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in"> $473,900 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in">             $585,963 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> $(99,384) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in">             $486,579 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-compete agreements </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in"> 5 years </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> 54,553 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> (49,256) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in"> 5,297 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in"> 54,382 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> (48,298) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in"> 6,084 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in"> Other </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in"> 12 years </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> 61,225 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> (15,990) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in"> 45,235 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in"> 53,934 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> (13,258) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in"> 40,676 </td> </tr> <tr style="mso-yfti-irow:7;height:13.5pt"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> Total </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in; height:13.5pt"> 19 years </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> 704,032 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> (179,600) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in; height:13.5pt"> 524,432 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in; height:13.5pt"> 694,279 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> (160,940) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in; height:13.5pt"> 533,339 </td> </tr> <tr style="mso-yfti-irow:8;height:13.5pt"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:9;height:13.5pt"> <td width="156" colspan="3" valign="top" style= "width:117.0pt;padding:0in .05in 0in .05in; height:13.5pt"> Intangible assets not subject to amortization: </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> </tr> <tr style="mso-yfti-irow:10;height:13.5pt"> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> Tradenames </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> 294,888 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">               - </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in; height:13.5pt"> 294,888 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in; height:13.5pt"> 294,064 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt">               - </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in; height:13.5pt"> 294,064 </td> </tr> <tr style= "mso-yfti-irow:11;mso-yfti-lastrow:yes;height:13.5pt"> <td width="156" colspan="3" valign="top" style= "width:117.0pt;padding:0in .05in 0in .05in; height:13.5pt"> Total intangible assets </td> <td width="12" valign="top" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> $998,920 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> $(179,600) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="78" valign="bottom" style= "width:58.5pt;padding:0in .05in 0in .05in; height:13.5pt"> $819,320 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="72" valign="bottom" style= "width:.75in;padding:0in .05in 0in .05in; height:13.5pt"> $988,343 </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:13.5pt"> $(160,940) </td> <td width="12" valign="bottom" style= "width:9.0pt;padding:0in .05in 0in .05in; height:13.5pt">   </td> <td width="66" valign="bottom" style= "width:49.5pt;padding:0in .05in 0in .05in; height:13.5pt"> $827,403 </td> </tr> </table>   Amortization expense related to intangible assets was $9.4 million and $9.9 million for the three months ended June 30, 2009 and 2008, respectively.   For the six months ended June 30, 2009 and 2008, amortization expense related to intangible assets was $18.4 million and $19.2 million, respectively.   The estimated amortization expense related to intangible assets for each of the five succeeding fiscal years and thereafter as of June 30, 2009 is as follows:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:131.4pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td width="198" valign="top" style= "width:148.5pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> Fiscal Year Ending December 31, </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="198" valign="top" style= "width:148.5pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:2"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> Remainder of 2009................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">   $       18,609 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> 2010........................................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">            36,962 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> 2011........................................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">            36,699 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> 2012........................................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">            35,412 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> 2013........................................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">            34,415 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> 2014........................................ </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">            33,373 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> Thereafter.............................. </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">          328,962 </td> </tr> <tr style="mso-yfti-irow:9;mso-yfti-lastrow:yes"> <td width="198" valign="top" style= "width:148.5pt;padding:0in 5.4pt 0in 5.4pt"> Total.................................. </td> <td width="18" valign="top" style= "width:13.5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in 5.4pt 0in 5.4pt">   $     524,432 </td> </tr> </table> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; 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302912000

162218000

356885000

188112000

317792000

170044000

375608000

198281000

1.56

0.83

1.90

1.01

1.54

0.83

1.89

1.00

-1977000

-890000

-1583000

88000

-1977000

-890000

-1583000

88000

-0.01

0.00

-0.01

0.00

-0.01

0.00

15591000

7592000

16952000

8382000

192645000

100787000

233724000

123535000

-40065000

4136000

2187000

8067000

-13914000

32335000

827403000

819320000

102125000

79715000

8403830000

8211435000

1224761000

1023876000

3078089000

2877767000

20238000

24498000

-326437000

-304132000

-68969000

-94076000

371210000

263556000

300935000

161328000

355302000

188200000

14880000

7826000

18723000

10169000

-77947000

-37292000

-71106000

-37559000

588384000

308123000

680438000

359375000

144995000

141993000

475846000

544150000

-489000

548000

-11804000

-9095000

-5965000

6028000

94821000

75996000

-250000000

-4196000

-320015000

-38889000

-37616000

-19887000

12052000

-11834000

-14463000

-4167000

-19743000

11562000

17225000

315815000

169154000

374025000

198369000

879687000

843757000

167568000

165424000

2561679000

2879722000

3622538000

1837901000

3709824000

1901818000

<div> <a name= "_AUC1b23625d22004ad492481f70b29a83c5"> 11.          SUMMARIZED FINANCIAL INFORMATION</a>   The Company’s senior notes due 2010, senior notes due 2011, senior notes due 2015, senior notes due 2017 and senior notes due 2037 are fully and unconditionally guaranteed by the Subsidiary Guarantors.  With the exception of Quest Diagnostics Receivables Incorporated (see paragraph below), the non-guarantor subsidiaries are primarily foreign subsidiaries and less than wholly-owned subsidiaries.  In conjunction with the Company’s secured receivables credit facility, the Company maintains a wholly-owned non-guarantor subsidiary, Quest Diagnostics Receivables Incorporated (“QDRI”).  The Company and certain of its Subsidiary Guarantors transfer certain domestic receivables to QDRI.  QDRI utilizes the transferred receivables to collateralize borrowings under the Company’s secured receivables credit facility.  The Company and the Subsidiary Guarantors provide collection services to QDRI.  QDRI uses cash collections principally to purchase new receivables from the Company and the Subsidiary Guarantors. The following condensed consolidating financial data illustrates the composition of the combined guarantors.  Investments in subsidiaries are accounted for by the parent using the equity method for purposes of the supplemental consolidating presentation.  Earnings (losses) of subsidiaries are therefore reflected in the parent’s investment accounts and earnings.  The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions.     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:265.5pt"> <td width="330" colspan="2" valign="top" style= "width:247.5pt;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Operations Three Months Ended June 30, 2009 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:1;page-break-inside:avoid"> <td width="240" valign="top" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="240" valign="top" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net revenues </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    230,634 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 1,560,418 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    198,806 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $     (88,040) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 1,901,818 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating costs and expenses: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Cost of services </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            144,405 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            894,932 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              60,875 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                        - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,100,212 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Selling, general and administrative </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              51,704 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            309,371 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              95,337 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">               (7,656) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          448,756 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Amortization of intangible assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                   21 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              7,777 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              1,579 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              9,377 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Royalty (income) expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (104,117) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          104,117 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:10"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Other operating income, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (15,217) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (395) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                (290) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (15,902) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Total operating costs and expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            76,796 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,315,802 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          157,501 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (7,656) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,542,443 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          153,838 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          244,616 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            41,305 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (80,384) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          359,375 </td> </tr> <tr style="mso-yfti-irow:13;height:11.25pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:11.25pt"> Non-operating (expense) income, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (48,829) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (73,781) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.25pt">              4,667 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">            80,384 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (37,559) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations before taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          105,009 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          170,835 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            45,972 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          321,816 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income tax expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            41,069 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            68,488 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            13,978 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          123,535 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            63,940 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          102,347 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            31,994 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          198,281 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from discontinued operations, net of taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                   88 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                   88 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Equity earnings from subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          124,260 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (124,260) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:19"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          188,200 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          102,435 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            31,994 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (124,260) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          198,369 </td> </tr> <tr style="mso-yfti-irow:20;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Less: Net income attributable to noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                     - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">            10,169 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">            10,169 </td> </tr> <tr style="mso-yfti-irow:21;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Net income attributable to Quest Diagnostics </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    188,200 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    102,435 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">    $      21,825 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $   (124,260) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    188,200 </td> </tr> <tr style= "mso-yfti-irow:22;mso-yfti-lastrow:yes;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:265.5pt"> <td width="330" colspan="2" valign="top" style= "width:247.5pt;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Operations Three Months Ended June 30, 2008 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net revenues </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    210,309 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 1,518,732 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    160,313 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $     (51,453) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 1,837,901 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating costs and expenses: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Cost of services </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            129,935 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            892,634 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              60,912 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                        - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,083,481 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Selling, general and administrative </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              55,002 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            305,632 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              83,430 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">               (6,027) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          438,037 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Amortization of intangible assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                   58 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              7,807 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              2,051 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              9,916 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Royalty (income) expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (107,694) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          107,694 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:10"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Other operating expense (income), net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                     4 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                  (49) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">             (1,611) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (1,656) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Total operating costs and expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            77,305 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,313,718 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          144,782 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (6,027) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,529,778 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          133,004 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          205,014 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            15,531 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (45,426) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          308,123 </td> </tr> <tr style="mso-yfti-irow:13;height:11.25pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:11.25pt"> Non-operating (expense) income, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (39,262) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (44,510) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.25pt">              1,054 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">            45,426 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (37,292) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations before taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            93,742 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          160,504 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            16,585 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          270,831 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income tax expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            32,462 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            64,408 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              3,917 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          100,787 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            61,280 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            96,096 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            12,668 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          170,044 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Loss from discontinued operations, net of taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (889) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                    (1) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (890) </td> </tr> <tr style="mso-yfti-irow:18"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Equity earnings from subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          100,048 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (100,048) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:19"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          161,328 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            95,207 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            12,667 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (100,048) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          169,154 </td> </tr> <tr style="mso-yfti-irow:20;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Less: Net income attributable to noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                     - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">              7,826 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">              7,826 </td> </tr> <tr style="mso-yfti-irow:21;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Net income attributable to Quest Diagnostics </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    161,328 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $      95,207 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">    $        4,841 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $   (100,048) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    161,328 </td> </tr> <tr style="mso-yfti-irow:22;height:12.6pt"> <td width="240" valign="top" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="84" valign="top" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="top" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> </tr> <tr style= "mso-yfti-irow:23;page-break-inside:avoid;mso-row-margin-right:265.5pt"> <td width="330" colspan="2" valign="top" style= "width:247.5pt;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Operations Six Months Ended June 30, 2009 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:24"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:25"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:26"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net revenues </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    440,686 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 3,056,335 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    370,365 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $   (157,562) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 3,709,824 </td> </tr> <tr style="mso-yfti-irow:27"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:28"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating costs and expenses: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:29"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Cost of services </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            271,368 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         1,763,019 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            119,314 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                        - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,153,701 </td> </tr> <tr style="mso-yfti-irow:30"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Selling, general and administrative </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              84,376 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            616,341 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            187,314 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (14,974) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          873,057 </td> </tr> <tr style="mso-yfti-irow:31"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Amortization of intangible assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                   47 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            15,625 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              2,710 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            18,382 </td> </tr> <tr style="mso-yfti-irow:32"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Royalty (income) expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (200,457) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          200,457 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:33"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Other operating (income) expense, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (16,196) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (184) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                 626 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (15,754) </td> </tr> <tr style="mso-yfti-irow:34"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Total operating costs and expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          139,138 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,595,258 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          309,964 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (14,974) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,029,386 </td> </tr> <tr style="mso-yfti-irow:35"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          301,548 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          461,077 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            60,401 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (142,588) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          680,438 </td> </tr> <tr style="mso-yfti-irow:36;height:11.25pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:11.25pt"> Non-operating (expense) income, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (90,635) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">         (130,245) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.25pt">              7,186 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">          142,588 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (71,106) </td> </tr> <tr style="mso-yfti-irow:37"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations before taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          210,913 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          330,832 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            67,587 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          609,332 </td> </tr> <tr style="mso-yfti-irow:38"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income tax expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            82,359 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          132,282 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            19,083 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          233,724 </td> </tr> <tr style="mso-yfti-irow:39"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          128,554 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          198,550 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            48,504 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          375,608 </td> </tr> <tr style="mso-yfti-irow:40"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Loss from discontinued operations, net of taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (1,583) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (1,583) </td> </tr> <tr style="mso-yfti-irow:41"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Equity earnings from subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          226,748 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (226,748) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:42"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          355,302 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          196,967 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            48,504 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (226,748) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          374,025 </td> </tr> <tr style="mso-yfti-irow:43;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Less: Net income attributable to noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                     - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">            18,723 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">            18,723 </td> </tr> <tr style="mso-yfti-irow:44;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Net income attributable to Quest Diagnostics </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    355,302 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    196,967 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">    $      29,781 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $   (226,748) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    355,302 </td> </tr> <tr style= "mso-yfti-irow:45;mso-yfti-lastrow:yes;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:265.5pt"> <td width="330" colspan="2" valign="top" style= "width:247.5pt;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Operations Six Months Ended June 30, 2008 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net revenues </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    407,728 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 2,999,331 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    330,469 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $   (114,990) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 3,622,538 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:5"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating costs and expenses: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Cost of services </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          249,737 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,768,897 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          123,474 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,142,108 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Selling, general and administrative </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            97,244 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          618,406 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          169,381 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (11,916) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          873,115 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Amortization of intangible assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                 113 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            15,725 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">              3,342 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            19,180 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Royalty (income) expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (212,334) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          212,334 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:10"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Other operating expense (income), net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                     4 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (150) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                (103) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                (249) </td> </tr> <tr style="mso-yfti-irow:11"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in">     Total operating costs and expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          134,764 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,615,212 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          296,094 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (11,916) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,034,154 </td> </tr> <tr style="mso-yfti-irow:12"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Operating income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          272,964 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          384,119 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            34,375 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (103,074) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          588,384 </td> </tr> <tr style="mso-yfti-irow:13;height:11.25pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:11.25pt"> Non-operating (expense) income, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (87,096) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (98,102) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.25pt">              4,177 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">          103,074 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.25pt">           (77,947) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations before taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          185,868 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          286,017 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            38,552 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          510,437 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income tax expense </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            67,598 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          114,798 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            10,249 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          192,645 </td> </tr> <tr style="mso-yfti-irow:16"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Income from continuing operations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          118,270 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          171,219 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            28,303 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          317,792 </td> </tr> <tr style="mso-yfti-irow:17"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Loss from discontinued operations, net of taxes </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (1,624) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                (353) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (1,977) </td> </tr> <tr style="mso-yfti-irow:18"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Equity earnings from subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          182,665 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (182,665) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:19"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          300,935 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          169,595 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            27,950 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (182,665) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          315,815 </td> </tr> <tr style="mso-yfti-irow:20;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Less: Net income attributable to noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">            14,880 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">            14,880 </td> </tr> <tr style="mso-yfti-irow:21;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt"> Net income attributable to Quest Diagnostics </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    300,935 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    169,595 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">    $      13,070 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $   (182,665) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">    $    300,935 </td> </tr> <tr style= "mso-yfti-irow:22;mso-yfti-lastrow:yes;height:12.6pt"> <td width="240" valign="bottom" style= "width:2.5in;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:12.6pt">   </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:333.0pt"> <td width="216" valign="top" style= "width:2.25in;padding:0in .05in 0in .05in"> Condensed Consolidating Balance Sheet June 30, 2009 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="444" colspan="5">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non- Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Current assets: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Cash and cash equivalents </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      55,623 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      14,507 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $      49,164 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $                - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    119,294 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Accounts receivable, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            10,038 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          168,265 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          718,232 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          896,535 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Other current assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            55,040 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          164,846 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          105,644 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (2,261) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          323,269 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total current assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          120,701 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          347,618 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          873,040 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (2,261) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,339,098 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Property, plant and equipment, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          196,710 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          611,905 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            35,142 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          843,757 </td> </tr> <tr style="mso-yfti-irow:9;height:9.9pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:9.9pt"> Goodwill and intangible assets, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">          153,169 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">       5,293,836 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.9pt">          439,582 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">       5,886,587 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Intercompany receivable (payable) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          470,681 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (263,868) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">         (206,813) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:11"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Investment in subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       5,540,994 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,540,994) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:12"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Other assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          153,830 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            18,483 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            48,439 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (78,759) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          141,993 </td> </tr> <tr style="mso-yfti-irow:13;height:11.7pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:11.7pt">     Total assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 6,636,085 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 6,007,974 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 1,189,390 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ (5,622,014) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 8,211,435 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:15"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Liabilities and Stockholders’ Equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:16"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Current liabilities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:17"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Accounts payable and accrued expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    505,061 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    255,580 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $      60,527 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $       (2,261) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    818,907 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Short-term borrowings and current portion of long-term debt </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                         - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                 2,956 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">             202,013 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                         - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             204,969 </td> </tr> <tr style="mso-yfti-irow:19"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total current liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          505,061 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          258,536 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          262,540 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (2,261) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,023,876 </td> </tr> <tr style="mso-yfti-irow:20"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Long-term debt </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,309,805 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          222,037 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          345,925 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,877,767 </td> </tr> <tr style="mso-yfti-irow:21;height:9.0pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:9.0pt"> Other liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">            80,075 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">          493,549 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.0pt">            49,285 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">           (78,759) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">          544,150 </td> </tr> <tr style="mso-yfti-irow:22"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Stockholders’ equity: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:23"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Quest Diagnostics stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,741,144 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       5,033,852 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          507,142 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,540,994) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,741,144 </td> </tr> <tr style="mso-yfti-irow:24"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            24,498 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            24,498 </td> </tr> <tr style="mso-yfti-irow:25"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,741,144 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       5,033,852 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          531,640 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,540,994) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,765,642 </td> </tr> <tr style="mso-yfti-irow:26;mso-yfti-lastrow:yes"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total liabilities and stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 6,636,085 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 6,007,974 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $ 1,189,390 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ (5,622,014) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 8,211,435 </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:333.0pt"> <td width="216" valign="top" style= "width:2.25in;padding:0in .05in 0in .05in"> Condensed Consolidating Balance Sheet December 31, 2008 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="444" colspan="5">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non- Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Current assets: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Cash and cash equivalents </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    218,565 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $        6,715 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $      28,666 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $                - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    253,946 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Accounts receivable, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              4,426 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          134,005 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          694,442 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          832,873 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Other current assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            52,407 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          262,952 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            98,631 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (3,990) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          410,000 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total current assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          275,398 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          403,672 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          821,739 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (3,990) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,496,819 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Property, plant and equipment, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          211,847 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          631,921 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            35,919 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          879,687 </td> </tr> <tr style="mso-yfti-irow:9;height:9.9pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:9.9pt"> Goodwill and intangible assets, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">          153,213 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">       5,303,312 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.9pt">          425,804 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">       5,882,329 </td> </tr> <tr style="mso-yfti-irow:10"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Intercompany receivable (payable) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          576,236 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (184,426) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">         (391,810) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:11"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Investment in subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       5,323,173 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,323,173) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> </tr> <tr style="mso-yfti-irow:12"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Other assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          179,222 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            33,301 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            39,951 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (107,479) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          144,995 </td> </tr> <tr style="mso-yfti-irow:13;height:11.7pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:11.7pt">     Total assets </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 6,719,089 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 6,187,780 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:11.7pt">    $    931,603 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ (5,434,642) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:11.7pt">    $ 8,403,830 </td> </tr> <tr style="mso-yfti-irow:14"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:15"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Liabilities and Stockholders’ Equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:16"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Current liabilities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:17"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Accounts payable and accrued expenses </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    552,094 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    628,958 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $      42,557 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $       (3,990) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 1,219,619 </td> </tr> <tr style="mso-yfti-irow:18"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Short-term borrowings and current portion of long-term debt </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                         - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                 2,886 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">                 2,256 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                         - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                 5,142 </td> </tr> <tr style="mso-yfti-irow:19"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total current liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          552,094 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          631,844 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            44,813 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (3,990) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       1,224,761 </td> </tr> <tr style="mso-yfti-irow:20"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Long-term debt </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       2,498,342 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          245,472 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          334,275 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,078,089 </td> </tr> <tr style="mso-yfti-irow:21;height:9.0pt"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in; height:9.0pt"> Other liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">            63,757 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">          473,579 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.0pt">            45,989 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">         (107,479) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.0pt">          475,846 </td> </tr> <tr style="mso-yfti-irow:22"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Stockholders’ equity: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:23"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Quest Diagnostics stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,604,896 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       4,836,885 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          486,288 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,323,173) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,604,896 </td> </tr> <tr style="mso-yfti-irow:24"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in"> Noncontrolling interests </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            20,238 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            20,238 </td> </tr> <tr style="mso-yfti-irow:25"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,604,896 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       4,836,885 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          506,526 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">      (5,323,173) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">       3,625,134 </td> </tr> <tr style="mso-yfti-irow:26;mso-yfti-lastrow:yes"> <td width="216" valign="bottom" style= "width:2.25in;padding:0in .05in 0in .05in">     Total liabilities and stockholders’ equity </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 6,719,089 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 6,187,780 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    931,603 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ (5,434,642) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $ 8,403,830 </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:265.5pt"> <td width="341" colspan="2" valign="top" style= "width:3.55in;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2009 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash flows from operating activities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    355,302 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    196,967 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    48,504 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $   (226,748) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    374,025 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Adjustments to reconcile net income to net cash provided by operating activities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Depreciation and amortization </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            28,105 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            94,480 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            7,462 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          130,047 </td> </tr> <tr style="mso-yfti-irow:7;height:9.9pt"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in; height:9.9pt"> Provision for doubtful accounts </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">              3,004 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">            34,322 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.9pt">        128,098 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">          165,424 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Other, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (170,732) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            45,361 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">           (3,455) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          226,748 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            97,922 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Changes in operating assets and liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (80,445) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (289,358) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">       (134,059) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (503,862) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash provided by operating activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          135,234 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            81,772 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          46,550 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          263,556 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash provided by (used in) investing activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          167,271 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (62,224) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">           (1,056) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (198,067) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (94,076) </td> </tr> <tr style="mso-yfti-irow:12"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash used in financing activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (465,447) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (11,756) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">         (24,996) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          198,067 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (304,132) </td> </tr> <tr style="mso-yfti-irow:13"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net change in cash and cash equivalents </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (162,942) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              7,792 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          20,498 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (134,652) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash and cash equivalents, beginning of period </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          218,565 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">              6,715 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          28,666 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          253,946 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash and cash equivalents, end of period </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      55,623 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      14,507 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    49,164 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $                - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    119,294 </td> </tr> <tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> </table>     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; mso-row-margin-right:265.5pt"> <td width="341" colspan="2" valign="top" style= "width:3.55in;padding:0in .05in 0in .05in"> Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2008 </td> <td style= "mso-cell-special:placeholder;border:none;padding:0in 0in 0in 0in" width="354" colspan="4">   </td> </tr> <tr style="mso-yfti-irow:1"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Parent </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Subsidiary Guarantors </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in"> Non-Guarantor Subsidiaries </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Eliminations </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in"> Consolidated </td> </tr> <tr style="mso-yfti-irow:2"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:3"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash flows from operating activities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:4"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net income </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    300,935 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    169,595 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    27,950 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $   (182,665) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    315,815 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Adjustments to reconcile net income to net cash provided by (used in) operating activities: </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">   </td> </tr> <tr style="mso-yfti-irow:6"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Depreciation and amortization </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            25,736 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            97,370 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">            9,578 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          132,684 </td> </tr> <tr style="mso-yfti-irow:7;height:9.9pt"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in; height:9.9pt"> Provision for doubtful accounts </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">              5,788 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">            57,873 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in; height:9.9pt">        103,907 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in; height:9.9pt">          167,568 </td> </tr> <tr style="mso-yfti-irow:8"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Other, net </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (161,572) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            16,914 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">         (13,261) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          182,665 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            24,746 </td> </tr> <tr style="mso-yfti-irow:9"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in">   Changes in operating assets and liabilities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          137,626 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (270,297) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">       (136,932) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (269,603) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash provided by (used in) operating activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          308,513 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            71,455 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">           (8,758) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          371,210 </td> </tr> <tr style="mso-yfti-irow:11"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash (used in) provided by investing activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (124,134) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (57,283) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          18,857 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            93,591 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (68,969) </td> </tr> <tr style="mso-yfti-irow:12"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net cash used in financing activities </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (198,160) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (17,839) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">         (16,847) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (93,591) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">         (326,437) </td> </tr> <tr style="mso-yfti-irow:13"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Net change in cash and cash equivalents </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (13,781) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">             (3,667) </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">           (6,748) </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">           (24,196) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash and cash equivalents, beginning of period </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          111,610 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">            14,847 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">          41,137 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">                      - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">          167,594 </td> </tr> <tr style="mso-yfti-irow:15;mso-yfti-lastrow:yes"> <td width="251" valign="bottom" style= "width:188.1pt;padding:0in .05in 0in .05in"> Cash and cash equivalents, end of period </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      97,829 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $      11,180 </td> <td width="84" valign="bottom" style= "width:63.0pt;padding:0in .05in 0in .05in">    $    34,389 </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $                - </td> <td width="90" valign="bottom" style= "width:67.5pt;padding:0in .05in 0in .05in">    $    143,398 </td> </tr> </table> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} table.MsoTableGrid {mso-style-name:"Table Grid"; mso-tstyle-rowband-size:0; 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<div> <a name= "_AUC96158b1c2f90436b929775f2ac31cc88"><![if !supportLists]>9.                   <![endif]>DISCONTINUED OPERATIONS</a> During the fourth quarter of 2005, NID instituted its second voluntary product hold within a six-month period due to quality issues, which adversely impacted the operating performance of NID.  As a result, the Company evaluated a number of strategic options for NID.  On April 19, 2006, the Company decided to discontinue NID’s operations.  During the third quarter of 2006, the Company completed its wind down of NID and classified the operations of NID as discontinued operations.  Results of operations for NID have been reported as discontinued operations in the accompanying consolidated statements of operations and related disclosures for all periods presented.  During the third quarter of 2007, the government and the Company began settlement discussions with respect to the government’s investigation involving NID and the Company.  Based on the status of settlement discussions, during 2007 the Company established a reserve, in accordance with generally accepted accounting principles, reflected in discontinued operations, of $241 million in connection with these claims. During the third quarter of 2008, the Company and NID reached an agreement in principle with the United States Attorney’s Office to settle the federal government investigation involving NID and the Company regarding NID test kits and tests performed using those test kits.  As a result of the agreement in principle in 2008, the Company recorded charges of $75 million in discontinued operations to increase its reserve for the settlement and related matters.  On April 15, 2009, the Company finalized the resolution of the federal government investigation related to NID and entered into a final settlement agreement with the federal government.  In the second quarter of 2009, the Company paid $268 million to settle the civil allegations.  In addition, NID pled guilty to a single count of felony misbranding and paid a $40 million fine.  These second quarter payments totaling $308 million, which had been previously reserved, were funded out of cash on-hand and available credit facilities. The Company also expects to enter into separate settlement agreements with certain states totaling approximately $6 million which are fully reserved for.  See Note 8 for further details. Summarized financial information for the discontinued operations of NID is set forth below:   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:.05in;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in .05in 0in .05in"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; height:23.0pt"> <td width="258" valign="top" style= "width:193.7pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="11" valign="top" style= "width:8.3pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="182" colspan="3" valign="top" style= "width:136.3pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:23.0pt"> Three Months Ended June 30, </td> <td width="11" valign="top" style= "width:8.25pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="187" colspan="3" valign="top" style= "width:140.15pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:23.0pt"> Six Months Ended June 30, </td> </tr> <tr style="mso-yfti-irow:1;height:11.15pt"> <td width="258" valign="top" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="top" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="82" valign="top" style= "width:61.85pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt:solid windowtext .5pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:11.15pt"> 2009 </td> <td width="11" valign="top" style= "width:8.5pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:11.15pt"> 2008 </td> <td width="11" valign="top" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt:solid windowtext .5pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:11.15pt"> 2009 </td> <td width="11" valign="top" style= "width:8.25pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in .05in 0in .05in;height:11.15pt"> 2008 </td> </tr> <tr style="mso-yfti-irow:2;height:11.15pt"> <td width="258" valign="top" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="top" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="82" valign="top" style= "width:61.85pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:11.15pt">   </td> <td width="11" valign="top" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:11.15pt">   </td> <td width="11" valign="top" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:11.15pt">   </td> <td width="11" valign="top" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="top" style= "width:65.95pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in .05in 0in .05in;height:11.15pt">   </td> </tr> <tr style="mso-yfti-irow:3;height:11.85pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.85pt"> Net revenues </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:11.85pt">   $                  - </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   $                  - </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   $                  - </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   $                  - </td> </tr> <tr style="mso-yfti-irow:4;height:11.15pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> </tr> <tr style="mso-yfti-irow:5;height:23.0pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:23.0pt"> Income (loss) from discontinued operations before income taxes </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:23.0pt">                  148 </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:23.0pt">              (1,500) </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:23.0pt">              (2,672) </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:23.0pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:23.0pt">              (3,093) </td> </tr> <tr style="mso-yfti-irow:6;height:11.15pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.15pt"> Income tax (expense) benefit </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:11.15pt">                  (60) </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">                  610 </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">               1,089 </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">               1,116 </td> </tr> <tr style="mso-yfti-irow:7;height:11.15pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.15pt"> Income (loss) from discontinued operations, net of taxes </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:11.15pt">   $               88 </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   $            (890) </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   $         (1,583) </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.15pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.15pt">   $         (1,977) </td> </tr> <tr style= "mso-yfti-irow:8;mso-yfti-lastrow:yes;height:11.85pt"> <td width="258" valign="bottom" style= "width:193.7pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="11" valign="bottom" style= "width:8.3pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="82" valign="bottom" style= "width:61.85pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="11" valign="bottom" style= "width:8.5pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="11" valign="bottom" style= "width:8.25pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> <td width="88" valign="bottom" style= "width:65.95pt;padding:0in .05in 0in .05in; height:11.85pt">   </td> </tr> </table>                   At June 30, 2009 and December 31, 2008, the settlement reserve totaling $7 million and $316 million, respectively, is included in “accounts payable and accrued expenses” in the consolidated balance sheet.  The deferred tax asset recorded in connection with establishing the reserve of $58 million is included in “deferred income taxes” in the consolidated balance sheet at December 31, 2008.  The remaining balance sheet information related to NID was not material at June 30, 2009 and December 31, 2008. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

<div> <a name= "_AUC467abf8869df44928639c8af2717e8f5">10.          BUSINESS SEGMENT INFORMATION</a> Clinical testing is an essential element in the delivery of healthcare services. Physicians use clinical tests to assist in the detection, diagnosis, evaluation, monitoring and treatment of diseases and other medical conditions. Clinical testing is generally categorized as clinical laboratory testing and anatomic pathology services. Clinical laboratory testing is performed on blood and body fluids, such as urine.  Anatomic pathology services are performed on tissues, such as biopsies, and other samples, such as human cells. Customers of the clinical testing business include patients, physicians, hospitals, employers, governmental institutions and other commercial clinical laboratories. The clinical testing business accounted for greater than 90% of net revenues from continuing operations in 2009 and 2008. All other operating segments include the Company’s non-clinical testing businesses and consist of its risk assessment services business, its clinical trials testing business, its healthcare information technology business, MedPlus and its diagnostics products businesses.  The Company’s risk assessment business provides underwriting support services to the life insurance industry including teleunderwriting, paramedical examinations, laboratory testing and medical record retrieval.  The Company’s clinical trials testing business provides clinical testing performed in connection with clinical research trials on new drugs and vaccines.  MedPlus is a developer and integrator of clinical connectivity and data management solutions for healthcare organizations, physicians and clinicians.  The Company’s diagnostics products business manufactures and markets diagnostic test kits. On April 19, 2006, the Company decided to discontinue NID’s operations and results of operations for NID have been classified as discontinued operations for all years presented (see Note 9).   At June 30, 2009, substantially all of the Company’s services are provided within the United States, and substantially all of the Company’s assets are located within the United States.    The following table is a summary of segment information for the three and six months ended June 30, 2009 and 2008.  Segment asset information is not presented since it is not reported to or used by the chief operating decision maker at the operating segment level.  Operating earnings (loss) of each segment represents net revenues less directly identifiable expenses to arrive at operating income for the segment.  General management and administrative corporate expenses, including amortization of intangible assets, are included in general corporate expenses below.  The accounting policies of the segments are the same as those of the Company as set forth in Note 2 to the Consolidated Financial Statements contained in the Company’s 2008 Annual Report on Form 10-K and Note 1 to the interim consolidated financial statements.     <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style= "margin-left:9.9pt;border-collapse:collapse;mso-table-layout-alt:fixed; mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;page-break-inside:avoid; height:10.85pt"> <td width="198" valign="top" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="204" colspan="3" valign="top" style= "width:153.3pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .25pt; padding:0in 5.4pt 0in 5.4pt;height:10.85pt"> Three Months Ended June 30, </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="204" colspan="3" valign="top" style= "width:153.05pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .25pt; padding:0in 5.4pt 0in 5.4pt;height:10.85pt"> Six Months Ended June 30, </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:1;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="top" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="top" style= "width:62.35pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .25pt;mso-border-top-alt:solid windowtext .25pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> 2009 </td> <td width="38" valign="top" style= "width:28.85pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .25pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="top" style= "width:62.1pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .25pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:10.85pt"> 2008 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="top" style= "width:62.1pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .25pt;mso-border-top-alt:solid windowtext .25pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> 2009 </td> <td width="38" valign="top" style= "width:28.85pt;border:none;border-top:solid windowtext 1.0pt; mso-border-top-alt:solid windowtext .25pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="top" style= "width:62.1pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .25pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:10.85pt"> 2008 </td> <td width="16" valign="top" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:2;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Net revenues: </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt;height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:3;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Clinical laboratory testing business </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   1,742,292 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   1,675,530 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   3,405,924 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   3,303,633 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:4;page-break-inside:avoid;height:11.55pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> All other operating segments </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         159,526 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         162,371 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         303,900 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         318,905 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> </tr> <tr style= "mso-yfti-irow:5;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Total net revenues </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   1,901,818 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   1,837,901 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   3,709,824 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> $   3,622,538 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:6;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:7;page-break-inside:avoid;height:13.0pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt"> Operating earnings (loss): </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:13.0pt">   </td> </tr> <tr style= "mso-yfti-irow:8;page-break-inside:avoid;height:11.55pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> Clinical laboratory testing business </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> $      393,524 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> (a) </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> $      337,938 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> $      736,935 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> (a) </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> $      643,902 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> </tr> <tr style= "mso-yfti-irow:9;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> All other operating segments </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">           20,302 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">           14,050 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">           33,165 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">           22,692 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:10;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> General corporate expenses </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (54,451) </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (43,865) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (89,662) </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (78,210) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:11;page-break-inside:avoid;height:11.55pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt"> Total operating income </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         359,375 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         308,123 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         680,438 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">         588,384 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:11.55pt">   </td> </tr> <tr style= "mso-yfti-irow:12;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Non-operating expenses, net </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (37,559) </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> (b) </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (37,292) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (71,106) </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> (b) </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         (77,947) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:13;page-break-inside:avoid;height:22.4pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> Income from continuing operations before income taxes </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">         321,816 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">         270,831 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">         609,332 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">         510,437 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> </tr> <tr style= "mso-yfti-irow:14;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Income tax expense </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         123,535 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         100,787 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         233,724 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         192,645 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:15;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Income from continuing operations </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         198,281 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         170,044 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         375,608 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         317,792 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:16;page-break-inside:avoid;height:22.4pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> Income (loss) from discontinued operations, net of taxes </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">                  88 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">              (890) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">           (1,583) </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">           (1,977) </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> </tr> <tr style= "mso-yfti-irow:17;page-break-inside:avoid;height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt"> Net income </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         198,369 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         169,154 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         374,025 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">         315,815 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> <tr style= "mso-yfti-irow:18;page-break-inside:avoid;height:22.4pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> Less: Net income attributable to noncontrolling interests </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">           10,169 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">             7,826 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">           18,723 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">           14,880 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> </tr> <tr style= "mso-yfti-irow:19;page-break-inside:avoid;height:22.4pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> Net income attributable to Quest Diagnostics </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> $      188,200 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> $      161,328 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> $      355,302 </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt"> $      300,935 </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:22.4pt">   </td> </tr> <tr style= "mso-yfti-irow:20;mso-yfti-lastrow:yes;page-break-inside:avoid; height:10.85pt"> <td width="198" valign="bottom" style= "width:148.75pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.35pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="38" valign="bottom" style= "width:28.85pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="83" valign="bottom" style= "width:62.1pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> <td width="16" valign="bottom" style= "width:11.8pt;padding:0in 5.4pt 0in 5.4pt; height:10.85pt">   </td> </tr> </table>   (a)  For the three and six months ended June 30, 2009, operating income includes a $15.5 million gain associated with an insurance settlement for storm related losses. <span style= "font-size:10.0pt;font-family:Times New Roman;mso-fareast-font-family: Times New Roman;letter-spacing:-.1pt;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA;mso-bidi-font-weight:bold">(b)  For the three and six months ended June 30, 2009, non-operating expenses, net includes a $7.0 million charge related to the write-off of an investment and a $6.3 million loss on the early extinguishment of debt (see Note 5 for further details). <style> /*<![CDATA[*/ st1:*{behavior:url(#ieooui) }  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

873115000

438037000

873057000

448756000

36841000

33166000

3604896000

3741144000

3625134000

3765642000

<div> <a name="_AUCd88f7aa19f3743bbb19d92d538624b19">6.             STOCKHOLDERS’ EQUITY</a>   Changes in stockholders’ equity for the six months ended June 30, 2009 were as follows:   <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style= "margin-left:-.05in;border-collapse:collapse;mso-table-layout-alt:fixed; border:none;mso-border-bottom-alt:solid windowtext .5pt;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:15.75pt"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:15.75pt"> <h6>   </h6> </td> <td width="430" colspan="7" valign="bottom" style= "width:322.55pt;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Quest Diagnostics Stockholders’ Equity </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:15.75pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:15.75pt">   </td> </tr> <tr style="mso-yfti-irow:1;height:15.75pt"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:15.75pt"> <h6>   </h6> </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt"> Shares of Common Stock Outstand-ing </td> <td width="60" valign="bottom" style= "width:45.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Common Stock </td> <td width="60" valign="bottom" style= "width:45.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Additional Paid-In Capital </td> <td width="60" valign="bottom" style= "width:45.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Retained Earnings </td> <td width="68" valign="bottom" style= "width:50.75pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt">  Accumulated Other Compre-hensive Loss </td> <td width="60" valign="bottom" style= "width:45.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Treasury Stock,  at Cost </td> <td width="60" valign="bottom" style= "width:45.3pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Compre-hensive Income </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Noncontroll-ing Interests </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Total Stockholders’ Equity </td> </tr> <tr style="mso-yfti-irow:2"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Balance,       December 31, 2008 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">      190,374 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $      2,141 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $    2,262,065 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $   2,561,679 </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    $      (68,068) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   $ (1,152,921) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">       $        20,238 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $       3,625,134 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Net income </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">           355,302 </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">     $     355,302 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                  18,723 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">               374,025 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Currency translation </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">             10,955 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">              10,955 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                  10,955 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Reversal of market valuation, net of tax expense of $190 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">                   290 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                 290 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                        290 </td> </tr> <tr style="mso-yfti-irow:6"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Deferred loss, less reclassifications </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">                1,234 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                                    1,234 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                    1,234 </td> </tr> <tr style="mso-yfti-irow:7"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Comprehensive income </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">     $     367,781 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:8"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Dividends declared </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt"> </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">            (37,259) </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                (37,259) </td> </tr> <tr style="mso-yfti-irow:9"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Distributions to noncontrolling interests </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                (14,463) </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                (14,463) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Issuance of common stock under benefit plans </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">              500 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                    368 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                9,402 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                    9,770 </td> </tr> <tr style="mso-yfti-irow:11;height:18.9pt"> <td width="121" valign="bottom" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt"> Stock-based compensation expense </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">              20,878 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">             12,288 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                  33,166 </td> </tr> <tr style="mso-yfti-irow:12;height:9.9pt"> <td width="121" valign="bottom" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt"> Exercise of stock options </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">              559 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">               (9,701) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">             26,926 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">                  17,225 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Shares to cover employee payroll tax withholdings on stock issued under benefit plans </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">             (129) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                         </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">               (1,822) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">              (3,995) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                   (5,817) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Tax benefits associated with stock-based compensation plans </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                 1,382 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                           </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                    1,382 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> Purchases of treasury stock </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">         (5,620) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                     </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                           </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">                          </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">                           </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">        (250,000) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">                               </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">             (250,000) </td> </tr> <tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes"> <td width="121" valign="top" style= "width:90.65pt;border:none;padding:0in 5.4pt 0in 5.4pt"> <h6> Balance, </h6> <h6 style= "margin-left:9.0pt;text-indent:-9.0pt;tab-stops:3.0in">       June 30, 2009 </h6> </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">      185,684 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $      2,141 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $    2,273,170 </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $   2,879,722 </td> <td width="68" valign="bottom" style= "width:50.75pt;border:none;padding:0in 5.4pt 0in 5.4pt">    $      (55,589) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $ (1,358,300) </td> <td width="60" valign="bottom" style= "width:45.3pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt">       $        24,498 </td> <td width="73" valign="bottom" style= "width:54.4pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $       3,765,642 </td> </tr> </table>   For the three months ended June 30, 2009, total comprehensive income was $220 million.    The market valuation adjustment represents the reversal of prior period unrealized holding losses for investments, net of taxes, where the decline in fair value was deemed to be other than temporary and the resulting loss was recognized in the consolidated statement of operations.  The deferred loss primarily represents deferred losses on the Company’s interest rate swap agreements, net of amounts reclassified to interest expense.  Foreign currency translation adjustments are not adjusted for income taxes since they relate to indefinite investments in non-U.S. subsidiaries. Dividend Program   During each of the quarters of 2009 and 2008, the Company’s Board of Directors has declared a quarterly cash dividend of $0.10 per common share. Share Repurchase Plan In January 2009, the Company’s Board of Directors authorized the Company to repurchase an additional $500 million of the Company’s common stock.  The share repurchase authorization has no set expiration or termination date.   The Company did not purchase any shares of its common stock during the second quarter of 2009.  For the six months ended June 30, 2009, the Company repurchased approximately 5.6 million shares of its common stock at an average price of $44.48 per share for $250 million, including 4.5 million shares repurchased from SB Holdings Capital Inc., a wholly-owned subsidiary of GlaxoSmithKline plc., at an average price of $44.33 per share for $200 million.  For the three and six months ended June 30, 2009, the Company reissued 0.4 million shares and 0.9 million shares, respectively, for employee benefit plans.  At June 30, 2009, $250 million of share repurchase authorization remained available.   Changes in stockholders’ equity for the six months ended June 30, 2008 were as follows:   <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style= "margin-left:-.05in;border-collapse:collapse;mso-table-layout-alt:fixed; border:none;mso-border-bottom-alt:solid windowtext .5pt;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tr style= "mso-yfti-irow:0;mso-yfti-firstrow:yes;height:11.25pt"> <td width="120" valign="bottom" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt; height:11.25pt"> <h6>   </h6> </td> <td width="432" colspan="7" valign="bottom" style= "width:4.5in;border:none; border-bottom:solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:11.25pt"> Quest Diagnostics Stockholders’ Equity </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:11.25pt">   </td> </tr> <tr style="mso-yfti-irow:1;height:15.75pt"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt; height:15.75pt"> <h6>   </h6> </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;mso-border-top-alt: solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt"> Shares of Common Stock Outstand- ing </td> <td width="60" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Common Stock </td> <td width="60" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Additional Paid-In Capital </td> <td width="60" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Retained Earnings </td> <td width="72" valign="bottom" style= "width:.75in;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt">  Accumulated Other Compre-hensive Income (Loss) </td> <td width="60" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Treasury Stock,  at Cost </td> <td width="60" valign="bottom" style= "width:45.0pt;border-top:solid windowtext 1.0pt; border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none; mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt"> Compre-hensive Income </td> <td width="72" valign="bottom" style= "width:.75in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:15.75pt"> Noncontroll-ing Interests </td> <td width="72" valign="bottom" style= "width:.75in;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt; height:15.75pt"> Total Stockholders’ Equity </td> </tr> <tr style="mso-yfti-irow:2"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Balance,       December 31, 2007 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">      194,040 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $      2,137 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $    2,210,825 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $    2,057,744 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">    $       25,279 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $      (971,743) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt">       $     21,463 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt"> $       3,345,705 </td> </tr> <tr style="mso-yfti-irow:3"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Net income </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">           300,935 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">     $    300,935 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">              14,880 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">               315,815 </td> </tr> <tr style="mso-yfti-irow:4"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Currency translation </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">             26,818 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">             26,818 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                  26,818 </td> </tr> <tr style="mso-yfti-irow:5"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Market valuation, net of tax benefit of $2,269 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">              (3,461) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">               (3,461) </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                   (3,461) </td> </tr> <tr style="mso-yfti-irow:6"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Deferred loss, less reclassifications </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">              (1,685) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">               (1,685) </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                   (1,685) </td> </tr> <tr style="mso-yfti-irow:7"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Comprehensive income </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">     $    322,607 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> </tr> <tr style="mso-yfti-irow:8"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Dividends declared </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt"> </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">            (38,949) </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                (38,949) </td> </tr> <tr style="mso-yfti-irow:9"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Distributions to noncontrolling interests </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">             (11,834) </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                (11,834) </td> </tr> <tr style="mso-yfti-irow:10"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Issuance of common stock under benefit plans </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">              693 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                   4 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                     (21) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                9,326 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                    9,309 </td> </tr> <tr style="mso-yfti-irow:11;height:18.9pt"> <td width="120" valign="bottom" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt"> Stock-based compensation expense </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">              30,909 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                5,932 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:18.9pt">                  36,841 </td> </tr> <tr style="mso-yfti-irow:12;height:9.9pt"> <td width="120" valign="bottom" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt"> Exercise of stock options </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">              397 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">               (8,023) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">             19,585 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt; height:9.9pt">                  11,562 </td> </tr> <tr style="mso-yfti-irow:13"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Shares to cover employee payroll tax withholdings on stock issued under benefit plans </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">               (50) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                         </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                   (687) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">              (1,614) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                   (2,301) </td> </tr> <tr style="mso-yfti-irow:14"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Tax benefits associated with stock-based compensation plans </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                 4,009 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                           </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                    4,009 </td> </tr> <tr style="mso-yfti-irow:15"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> Other </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                      </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                     </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                   334 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                          </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                           </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">                          </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                            </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">                       334 </td> </tr> <tr style="mso-yfti-irow:16;mso-yfti-lastrow:yes"> <td width="120" valign="top" style= "width:1.25in;border:none;padding:0in 5.4pt 0in 5.4pt"> <h6> Balance, </h6> <h6 style= "margin-left:9.0pt;text-indent:-9.0pt;tab-stops:3.0in">       June 30, 2008 </h6> </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">     195,080 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $      2,141 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $    2,237,346 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $    2,319,730 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">    $       46,951 </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt"> $      (938,514) </td> <td width="60" valign="bottom" style= "width:45.0pt;border:none;padding:0in 5.4pt 0in 5.4pt">   </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt">       $     24,509 </td> <td width="72" valign="bottom" style= "width:.75in;border:none;padding:0in 5.4pt 0in 5.4pt"> $       3,692,163 </td> </tr> </table>   For the three months ended June 30, 2008 comprehensive income was $157 million.   The market valuation adjustment represents unrealized holding losses on investments, net of taxes.  The deferred loss primarily represents deferred losses on the Company’s interest rate swap agreements, net of amounts reclassified to interest expense.  Foreign currency translation adjustments are not adjusted for income taxes since they relate to indefinite investments in non-U.S. subsidiaries.                   For the three and six months ended June 30, 2008, the Company reissued 0.3 million shares and 0.7 million shares, respectively, for employee benefit plans.  The Company did not purchase any shares of its common stock during the three or six months ended June 30, 2008. <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} /*]]>*/ </style> </div>

23739000

28434000

1152921000

1358300000

195951000

196119000

188850000

187003000

194335000

194527000

187318000

185266000